Altran Reports Results of Audit and Revenues for First Nine Months of 2002.

Business Editors

PARIS--(BUSINESS WIRE)--Nov. 15, 2002

Altran Technologies (Nasdaq:ALTKF) (Euroclear:3463) (Bloomberg:ALT FP) (Reuters:ALTR.PA)

The Board of Directors was informed of the results of the audit made by Ernst & Young Audit and Concorde Europeenne Audit France and decided on October 11 this year.

The audit covered a group of companies accounting for 93% of Altran's results, and took into account events occurring until November 8, 2002.

The conclusions of the audit carried out are as follows:

1 - The results give a true and fair view of the accounts established at December 31, 2001.

2 - The auditors reviewed the half-year 2002 accounts of the various subsidiaries and their consolidation. A statement was released on the subject of these accounts on October 8, 2002. Following the audit, it was decided that additional adjustments were appropriate to take into account the prudence principle in a difficult economic climate. The net adjustments amount to EUR 35.9 million before tax and break down as follows:

a. Adjustments relating to 2001 events for an amount of EUR 5

million before tax represents 2.1% of 2001 operating income of

EUR 234 million;

b. In application of the prudence principle, revenues entered by

some subsidiaries for contracts in process were neutralized in

the amount of EUR 23.1 million and will not be entered until

the final completion of the contracts. 78.5% of these

adjustments are concentrated on three companies outside

France;

c. Additional provisions on assets in the amount of EUR 11

million were made to take into account the risk of disputes

and insolvency;

d. Additional provisions were made on the Ilyad Value contracts

in the amount of EUR 2.5 million excluding value-added tax

(VAT). Given the payments already received (EUR 1.8 million

including VAT, or EUR 1.5 million excluding VAT) and

provisions made at June 30, 2002 (EUR 1 million excluding

VAT), all of the outstanding payments are fully provisioned.

e. In addition, a foreign exchange adjustment was restated with a

positive impact of EUR 5.7 million.

All adjustments have been entered into the 2002 half-year accounts. The after-tax impact is EUR 21 million. The final accounts approved by the Board of Directors and the auditors are therefore as follows:

in EUR m                         June 30 01         June 30 02

Net sales                           577,0              696,1

Other revenues                       15,9                7,2

Total revenues                      592,9              703,3


Depreciation, amortization
 & provisions                         6,6               26,9

Operating income after
 profit sharing                      97,9               53,3

Operating margin (as a
 % of net sales)                     17,0%               7,7%

Net income before exceptional
 items and amortization
 of goodwill                         59,2               33,0

Net income                           52,6               23,1

EPS before exceptional
 items & amortization of
 goodwill (in EUR)                   0,66               0,36

EPS (in EUR)                         0,58               0,25

Number of shares               90 045 846         91 716 381



in EUR m                         June 30 01         June 30 02

Intangible assets (*)               335,7              573,9

Other assets                         52,2               99,6

Current assets                      503,3              648,3

Cahs and marketable securities      238,7              166,2

Deferred charges                     10,3               13,0

Total Assets                       1140,2             1501,0

Shareholder's equity                302,5              377,2

Minority interests                    0,2                0,3

Provisions                           15,6               49,1

Financial Debt                      514,6              593,1

Debt relating to fixed assets        11,2               92,6

Current liabilities                 292,5              367,1

Deferred Income                       3,6               21,6

Total liabilities                  1140,2             1501,0

* including goodwill                320,6              503,5

None of the elements noted during this audit have any consequences for the health of the company's balance sheet.

The adjustments made at June 30, 2002 have no impact on the amount of the company's debt.

The Board of Directors noted that some of the difficulties encountered were associated, during a difficult business period, with incentive plans in place. The Board considers that there is no need to call into question the existing decentralized organizational structure, which is highly motivating and has enabled revenues to be multiplied by 10 in 7 years. However, it considers that the management and control methods must be strengthened to fit the company's current size and situation.

As a consequence, the Board of Directors made the following decisions:

a. Given the difficulties and uncertainties encountered during

the execution of the Ilyad Value contracts, the Board gave Mr.

Michel Friedlander the responsibility of taking all necessary

measures to terminate these contracts and report back to the

Board;

b. Corporate governance will be strengthened: the Board will ask

the next Shareholders General Meeting to approve the

appointment of independent administrators and the creation of

an audit Committee;

c. Mr. Eric Albrand who will join the company on December 16,

2002 as a "Directeur General" in charge of finance;

d. Mr. Alain Rougagnou will be appointed company secretary;

e. The company's financial control procedures will be

strengthened, in particular by setting up an autonomous

internal audit department.

Revenues for the first nine months of 2002

For the first nine months of the year, Altran Technologies generated revenues of EUR 1029.8 million, up 16.5% year on year. On a like-for-like basis, business is stable.

The company's overall growth was principally driven by activities outside France. Revenues outside France reached EUR 530.2 million over the nine-month period representing 51.4% of total group revenues.

Overall growth outside France was 38.3% and organic growth was 2.8%.

In France, where the company generates 48.6% of its revenues, the situation remains stable in a difficult environment. Revenues was EUR 499.6 million, and organic growth has been negative of 2.1% in the first nine months of 2002.

Outlook

Given current economic conditions, which continue to be difficult, and the reduced visibility, the company considers that its 2002 growth will be driven by the acquisitions already carried out. Any additional deterioration of its business environment by the end of the year is not expected to occur.